US Agencies Investigate Infosys Over ‘Cheating’ Allegations; SEBI, BSE Question Infosys’ Intentions
Recently, Infosys, a leading IT company of India had its name dragged through the mud when a particular group of ‘ethical employees’ accused the company and its CEO of some serious frauds.
No sooner did this come to limelight, and an investigation was initiated in the company by the US Securities and Exchange Commission.
In response to this investigation, the company clarified its stand on the issue, stating that an investigation is being conducted over the ‘generalised allegations.’
Find out all the details right here!
Infosys Accused of Cheating; US SEC Launches Investigation
A complaint by whistleblower was sent to the US Securities and Exchange Commission, that disclosed several frauds going on at the company on a high level.
There were shocking complaints made against Infosys – The company’s high level officials were accused of sharing only the good and incomplete data with the Board members, and the CEO of the company was accused of being racist, and calling Board members some utterly disrespectful names.
This also resulted in the shares of the company diminishing by a whopping 16%, and investors even lost Rs 44,000 crores in the company.
The US SEC has initiated an investigation in the matter, and the Securities and Exchange Board of India (SEBI) has also asked for information regarding the complaints.
Infosys said, “The company will cooperate with the SEC’s investigation. Also, the Securities and Exchange Board of India (SEBI) has requested additional information from the company concerning the anonymous complaints. The company will provide the information as per Sebi’s request.”
Infosys Issues Statement Responding To The Allegations
Soon after SEBI and SEC asked Infosys the reason behind Infosys’ failure of informing them about the complaints of whistleblowers. Infosys issued a statement promptly that said that the company’s audit committee has been reviewing the complaints.
Infosys also said that before the investigation of the ‘generalised allegations’ came to a conclusion, there was no need for disclosure. Apparently, the company’s audit team has retained a law firm, Shardul Amarchand Mangaldas & Co to initiate an independent investigation.
The company said, “As disclosed in the company’s stock exchange filings made on October 22, 2019, the anonymous whistleblower complaints have been placed before the audit committee who has retained the law firm of Shardul Amarchand Mangaldas & Co to conduct an independent investigation.”
We’ll keep you informed as we get more updates!